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Contracting Principles

 

The IACCM Contracting Principles provide a set of guidelines to support and streamline the drafting and negotiation of contract clauses.

They offer contracting parties the ability to take fair and balanced positions from the outset of negotiations on a variety of terms that frequently absorb significant time and resource in arriving at those general outcomes.

 
 

“Our primary goal is to establish a rough consensus on what balanced terms look like. The IACCM Contracting Principles will be a fundamental contributor to speed to contract.”

Hal Bretan, Chief Counsel, BT Americas Inc.
Lita Bollimpalli, Associate General Counsel, Verizon Business Network Services Inc.

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The need for Contracting Principles

Whether you are a customer or a supplier, Speed to Contract (“S2C”) produces benefits

The faster parties come to “yes,” the sooner critical products or services can drive a customer’s business success, the quicker involved personnel can shift to other tasks, and the earlier revenue streams can hit the supplier’s books. Unfortunately, all too often, negotiations over the same issues slow down the process. Many of us can replay arguments over limitations of liability, indemnifications, audits and the like in our sleep. A practical solution is at hand.

IACCM is now endorsing a set of fair, balanced contracting principles that, if accepted in advance by the parties and built into template agreements, can remove these issues from the negotiating table and allow the business folks to focus quickly on the core of the deal – deliverables and commercials.

 

Contracting Principles as Industry-Adopted Set of Guidelines

The Principles reflect a change in mindset on how contract negotiations should take place in a marketplace where efficiency and speed to contract are valued.

The IACCM Contracting Principles (the “Principles”) provide a set of guidelines to support and streamline the drafting and negotiation of contract clauses. They offer contracting parties the ability to take fair and balanced positions from the outset of negotiations on a variety of terms that frequently absorb significant time and resource in arriving at those general outcomes. They are intended to serve as industry-adopted set of guidelines to support either the drafting of applicable contract clauses or the negotiation of applicable terms and conditions between a supplier and a customer and as such have the potential to reduce or eliminate the need for negotiation on these issues and shorten cycle time to signature.